Broadcom Shares Face Pressure as CFO Executes Major Stock Sale

Broadcom Inc. is sending mixed messages to investors at the start of the year. While institutional analysts project significant long-term growth, actions by the company's own leadership are introducing near-term uncertainty. A multimillion-dollar stock disposal by Chief Financial Officer Kirsten M. Spears has become a focal point for market concern, prompting a debate over whether this represents a routine portfolio adjustment or a more cautionary signal.

The recent share price weakness follows a transaction disclosed in SEC filings dated January 5. The documents reveal that CFO Kirsten M. Spears sold 30,000 Broadcom shares on December 31 at an average price of $347.82. This disposal, valued at approximately $10.4 million, reduced her direct holdings by nearly 10%.

Market participants reacted to this news by taking profits, coming after a remarkable 12-month rally that saw the stock appreciate by roughly 50%. The decline below the $345 level reflects short-term investor unease, even though insider selling following such a powerful advance is not uncommon.

On the institutional side, however, support remains robust. Bank of America reiterated its Buy rating this week, naming Broadcom alongside Nvidia and AMD as a top semiconductor pick for 2026. The bank's analysts characterized the current pullback as a technical correction rather than a reflection of deteriorating fundamentals. They highlighted Broadcom's commanding position in Ethernet networking for AI data centers and its custom chip (ASIC) business as primary growth drivers. Concurrently, the ongoing CES 2026 in Las Vegas, where AI infrastructure is a central theme, continues to generate investor interest in key hardware suppliers.

Should investors sell immediately? Or is it worth buying Broadcom?

Strong Fundamentals Underpin the Long-Term View

The optimistic institutional stance is grounded in solid recent financial performance. For its fourth fiscal quarter, the company reported revenue of $18.02 billion, surpassing market expectations. More critical for the long-term valuation, however, is Broadcom's massive AI-related backlog, which stands at $73 billion. This provides substantial revenue visibility for the coming 18 months.

From a chart perspective, the technical outlook remains constructive despite the recent setback. Although the share price recently failed to break through resistance around $355, it continues to trade well above the 200-day moving average of $263.75, confirming the longer-term upward trend remains intact.

Looking Ahead: All Eyes on March Earnings

Investor attention is now shifting to the next quarterly report, due in March. Management has already provided revenue guidance of approximately $19.1 billion for the first fiscal quarter of 2026, fueled by demand for AI accelerators and VMware software. With the average analyst price target sitting near $437, significant theoretical upside persists despite the recent insider sales. Maintaining the key support zone around $336 in the coming trading sessions will be crucial for this potential to be realized.